The Ray White Surfers Paradise mega-auction The Event was held recently and saw a huge degrees of success, with over $20million worth of property being sold over the weekend. With more than 1,000 attendees and 99 properties going under the hammer, evidently Surfers Paradise property is still highly sought-after by people looking to make their way into the local Gold Coast market.
Ray White Surfers Paradise Group chief executive Andrew Bell said that the 2015 auction event – which is now in its 22nd year – was one of the best ones to be recorded in the area, reinforcing the possibilities that the region is continuing to develop and grow.
"Properties were selling well over reserve prices and many properties that sold had four or five bidders competing. It was a big step up from last year. There were more people here and more bidders per property on average," said Mr Bell in a 27 January post on the Ray White website.
He went on to say that selling close to 60 properties over the course of six hours was also cause for celebration, with many buyers from Melbourne and Sydney making their way to the event to purchase investment real estate in the area. The high volume of those bidding for investments says a significant amount about the state of the market and the overarching rising popularity of real estate in Surfers Paradise.
As more people begin to move into the area – whether as owner occupiers or investors – the potential for making your own moves into the area and purchasing commercial real estate in Surfers Paradise could be a great move to make.
Interestingly, joint chairman of the Ray White Group Brian White said that, nationwide, the commercial real estate sector saw a 65 per cent increase in transactions seen over 2014. He pointed to investment sales, site development and leasing all having a helping hand in pushing these properties into the spotlight.
Again, this could be an interesting market to keep an eye on heading into 2015 and could provide a great investment avenue to consider.
The latest CBRE's Australia Retail Market View for the fourth quarter of 2014 has highlighted a nationwide expectancy for an increase in rent for retail spaces in central business districts. Over the last year, rents have risen by 3.7 per cent.
CBRE's head of research in Australia Stephen McNabb said that growing residential activity was one of the factors to consider when looking at these changes, as more households mean more people are buying items for their properties.
"Retailer profit margins have fallen in the past two quarters due to rising competition and the weakening Australian dollar, but are still relatively high after a period of consolidation and cost cutting," said Mr McNabb.
As Brisbane's CBD becomes more populated, the possibility of moving into the outer Queensland regions like Surfers Paradise could be a great strategy to consider. This is especially true as the number of residential properties being sold in the area continues to climb as well.
CBRE National Director for Retail Services Alistair Palmer echoed these sentiments, stating that foreign brands had a lot of power behind them to help keep up with rising costs.
"Domestic retailers are also repositioning and reinventing themselves to target niches between the mass and high-end luxury markets, such as the fast growing 'affordable luxury' segment," added Mr Palmer.
With these developments, now could be a wonderful time to start looking into the commercial property options in Surfers Paradise and consider making a move in the near future.